All posts tagged U.S. equities

On the surface at least, U.S. equities and the euro would appear to inhabit different worlds.

To the mystification of many economists, shares have spent the summer rising inexorably. The S&P 500 seems to forge new highs for the year on a daily basis as investors hope for some new injection of cash from the Federal Reserve, whatever form it takes.

And the euro, well, its highs for the year are but a February memory. Buffeted by its own long crisis, the single currency instead hit its 2012 low against the dollar in July, and, although it has climbed considerably since, that peak, $1.3486, remains a long way off.

We’re a very far cry from the days of late 2011, when the two all-but moved in together, and then went about in near unison as perhaps the most obvious ‘risk assets’ around.

However, dig at little deeper and the two remain surprisingly close despite this diversion of fortunes. Indeed, their correlation has even been getting a little closer recently.